EvaLSeraphim_IHB
New member
<p>Oil, for one. The last time oil costs spiked, a gas surcharge was being added to the delivery fee for materials delivery.</p>
Lennar being saved by Morgan Stanley...
- Thread starter graphrix_IHB
- Start date
NEW -> Contingent Buyer Assistance Program
mino2126_IHB
New member
GN....I am not sure how builders subcontract out their materials but when I worked at GE we would have multi yr contracts to buy certain materials. As a result if Copper, Aluminum, or the part that we were buying went down in cost for our supplier, the supplier would retain that margin.
Not sure if this is similar in the building industry but as building cost were increasing a few yrs ago some of the builders might have entered into contracts to purchase large quantities of gypsum board from Corning at discount prices. Now that gypsum has gone down Corning is still enforcing the contract till it expires....like I said this might not be true but could be a logical reason for why building cost of reduced and the reduction is not being passed through.
Not sure if this is similar in the building industry but as building cost were increasing a few yrs ago some of the builders might have entered into contracts to purchase large quantities of gypsum board from Corning at discount prices. Now that gypsum has gone down Corning is still enforcing the contract till it expires....like I said this might not be true but could be a logical reason for why building cost of reduced and the reduction is not being passed through.
IrvineRenter_IHB
New member
<em>"So, why haven't building costs gone down ?"</em>
Costs are starting to decline, and I have heard anecdotally that some projects in the Inland Empire are seeing dramatic drops in their cost of completion for site work.
If you want to better understand the relationship between house price and land value, I suggest you read this post <strong><a title="Permanent Link to Land Value 101" rel="bookmark" linkindex="6" set="yes" href="http://www.irvinehousingblog.com/2007/07/16/land-value-101/">Land Value 101.</a></strong>
Costs are starting to decline, and I have heard anecdotally that some projects in the Inland Empire are seeing dramatic drops in their cost of completion for site work.
If you want to better understand the relationship between house price and land value, I suggest you read this post <strong><a title="Permanent Link to Land Value 101" rel="bookmark" linkindex="6" set="yes" href="http://www.irvinehousingblog.com/2007/07/16/land-value-101/">Land Value 101.</a></strong>
lawyerliz_IHB
New member
Anybody know what got transferred to Morgan Stanley and what Lennar kept? If anything.
J
jpmorganfunds_IHB
Guest
<p>Costs have gone up because things like granite counters and double vanity bathrooms have become standard. Now that the housing bubble has burst those things will start to go away. We will go back to the days where the buyer even has to purchase the flooring.</p>
<p> </p>
<p> </p>
GrewUpInIrvine_IHB
New member
Lennar Corporation's Fourth Quarter Earnings Conference Call to be Broadcast Live on the Internet
MIAMI, Jan. 10 /PRNewswire-FirstCall/ -- Lennar Corporation (NYSE: LEN and LEN.B) announced today that the Company will release earnings for the fourth quarter and year ended November 30, 2007 before the market opens on January 24, 2008. Additionally, the Company will hold a conference call on January 24, 2008 at 11:00 a.m. Eastern Time.
MIAMI, Jan. 10 /PRNewswire-FirstCall/ -- Lennar Corporation (NYSE: LEN and LEN.B) announced today that the Company will release earnings for the fourth quarter and year ended November 30, 2007 before the market opens on January 24, 2008. Additionally, the Company will hold a conference call on January 24, 2008 at 11:00 a.m. Eastern Time.